September 20, 2018 5:37pm

A three (3) day upside wonder after ten (10) sessions of alternating (negative/positive) closes

But, is the upside pricing ready for Friday’s “quadruple witching” when futures and options on indexes and individual stocks expire?

 

Acknowledge the facts in evidence as to the numbers provided!

 

Pre-open indications: News – 2 HITs, 1 MISS; Research Note: 1 HIT; Oversold: 2 HITS and Overbought: 2 HITs

Out and about: FATE Therapeutics (FATE) proposes offering and is down -$0.28 or -2% to $14.03 in the aftermarket with NO amount of dollars or shares offered. CRISPR Therapeutics (CRSP) closed down another -$2.90 or -5.59% to $48.99 after yesterday’s proposed $230 M offering

 

Who is defining the metrics for individual investors and which broker, trader, fund or I-Bank is keeping you notified of the sector and market fluctuations?

RMi’s daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

Henry’omics:

It was a huge day but, was Icarus in flight? WHY am I so concerned with a downslide – I’ve been let down so MANY times as to pricing sustainability;  I’m NOT that jaded but concerned by the cycles of momentum!

Investors should be more concerned with tomorrow - Friday’s “quadruple witching”

With a potential of a very volatility day with the combination of quadruple witching, which only happens four (4) times a year, and an almost once in a lifetime change in S&P 500 GICS.

While the quadruple witching event normally coincides with index rebalancing, the scope of Friday’s shuffling is what sets it apart.

The last quadruple witching was June 15, and S&P 500 trading volume surged 75% to 3.5 billion shares from the previous month.

 

From the pre-open newsletter: “is this sector trend your friend? Algorithms, ETFs and trading are part of the answer … as record outflows empty some ETFs – the XBI and IBB.”

 

One point of awareness – two (2) sessions – two (2) offerings introduced – when the sector gets that hot, it will just as soon cool down!

 

Daily analytics and metrics:

  • The Dow jumped +251.2 points or +0.96% to 26,656.98
  • The S&P popped 22.80 points or +0.78% to 3,930.75
  • The NASDAQ rallied +78.19 points to 8,028.23

 

The advance/decline line scenario of 45 covered companies:   

  • The open was positive with an A/DL of 31/12 and 2 flats;
  • The mid-day was positive with an A/DL of 33/12 and 0 flat;
  • The close was positive with an A/DL of 34/10 and 1 flat;

 

Pre-open indications:

I sticking with the issue of reflex action and the overbought – if NOT today (Thursday) but, by Monday <as I had stated Wednesday>:

Research note:

  • CRISPR Therapeutics (CRSP) closed down -$2.90 – hit;

Overbought:

  • NTLA closed down -$0.48 – hit;
  • EDIT closed down -$0.62 – hit;
  • Verastem Oncology (VSTM) closed down -$0.08 – hit;

Oversold:

  • Global Blood Therapeutics (GBT) closed up +$0.55 – hit;
  • Sage Therapeutics (SAGE) closed up +$2.21 – hit;

News:

  • Asterias Biotherapeutics (NYSEMKT: AST) closed up +$0.00 – hit;
  • Mesoblast (MESO) closed up +$0.19 – hit;
  • Adverum Biotechnologies, Inc. (ADVM) closed down -$0.10 – miss;

 

Of the 45 companies covered on Thursday; 10 downside equities finished in a range of -0.53% (ATHX) to -5.59% (CRSP) while 34 upside equity oscillated from +0.15% (FIXX) to +12.73% (MDXG) with 1  flat closes (AST).

 

Out and about:

Fate Therapeutics (FATE) has commenced an underwritten public offering of its common stock. The offering is subject to market conditions. No dollar value … yet – surprising!

Jefferies, Piper Jaffray, and Wells Fargo Securities are acting as joint book-running managers for the offering. Wedbush PacGrow is acting as a co-manager for the offering.

 

Five (5) key metrics:  

… The greatest volume to the downside:  CRSP, VSTM, ADVM, BLCM and EDIT

… Upside volume was weighted to:  MDXG, SGMO, HSGX, VCEL and FATE

… Leadership ($) to the downside:  CRSP (-$2.90), EDIT (-$0.620, OSIR (-$0.50), NTLA (-$0.48) and STML (-$0.45)

… Best moves ($) to the upside:  SLDB (+$2.64), QURE (+$2.58), SAGE (+$2.21), RGNX (+$1.90) and RENE.L (+$1.50)

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Thursday was up +1.39%
  • Wednesday was up +0.13%
  • Tuesday was up +1.12%
  • Monday was down -1.32%
  • Friday was down 0.51%
  • Last Thursday was up +0.74%

 

September sessions:

Thursday’s closed POSITIVE with 10 decliners, 34 advancers and 1 flat 

Wednesday’s closed POSITIVE with 18 decliners, 24 advancers and 3 flats 

Tuesday’s closed POSITIVE with 7 decliners, 36 advancers and 2 flats 

Monday’s closed NEGATIVE with 31 decliners, 12 advancers and 2 flats 

Friday’s closed POSITIVE with 19 decliners, 23 advancer and 3 flats 

Thursday’s closed NEGATIVE with 22 decliners, 20 advancer and 3 flats 

Wednesday’s closed POSITIVE with 20 decliners, 25 advancer and 0 flats 

Tuesday’s closed POSITIVE with 20 decliners, 23 advancer and 2 flats 

Monday’s closed NEGATIVE with 28 decliners, 17 advancer and 2 flats 

Friday’s closed POSITIVE with 15 decliners, 23 advancer and 7 flats 

Thursday’s closed NEGATIVE with 39 decliners, 1 advancer and 5 flats 

Wednesday’s closed NEGATIVE with 30 decliners, 12 advancers and 3 flats 

Tuesday’s (9/4) closed NEGATIVE with 22 decliners, 19 advancers and 4 flats  

 

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.